ELMD Long Put Strategy
ELMD (Electromed, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on AMEX.
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.
ELMD (Electromed, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $281.6M, a trailing P/E of 27.66, a beta of 0.39 versus the broader market, a 52-week range of 17.73-34.43, average daily share volume of 48K, a public-listing history dating back to 2010, approximately 174 full-time employees. These structural characteristics shape how ELMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.39 indicates ELMD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on ELMD?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current ELMD snapshot
As of May 15, 2026, spot at $35.42, ATM IV 61.80%, IV rank 27.80%, expected move 17.72%. The long put on ELMD below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this long put structure on ELMD specifically: ELMD IV at 61.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a ELMD long put, with a market-implied 1-standard-deviation move of approximately 17.72% (roughly $6.28 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ELMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ELMD should anchor to the underlying notional of $35.42 per share and to the trader's directional view on ELMD stock.
ELMD long put setup
The ELMD long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ELMD near $35.42, the first option leg uses a $35.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ELMD chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ELMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $35.42 | N/A |
ELMD long put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
ELMD long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on ELMD. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use long put on ELMD
Long puts on ELMD hedge an existing long ELMD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ELMD exposure being hedged.
ELMD thesis for this long put
The market-implied 1-standard-deviation range for ELMD extends from approximately $29.14 on the downside to $41.70 on the upside. A ELMD long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ELMD position with one put per 100 shares held. Current ELMD IV rank near 27.80% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ELMD at 61.80%. As a Healthcare name, ELMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ELMD-specific events.
ELMD long put positions are structurally bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ELMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ELMD alongside the broader basket even when ELMD-specific fundamentals are unchanged. Long-premium structures like a long put on ELMD are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ELMD chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ELMD?
- A long put on ELMD is the long put strategy applied to ELMD (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With ELMD stock trading near $35.42, the strikes shown on this page are snapped to the nearest listed ELMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ELMD long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the ELMD long put priced from the end-of-day chain at a 30-day expiry (ATM IV 61.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ELMD long put?
- The breakeven for the ELMD long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ELMD market-implied 1-standard-deviation expected move is approximately 17.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on ELMD?
- Long puts on ELMD hedge an existing long ELMD stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ELMD exposure being hedged.
- How does current ELMD implied volatility affect this long put?
- ELMD ATM IV is at 61.80% with IV rank near 27.80%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.